Passenger vehicle dispatches from manufacturers to dealers rose 27 per cent year-on-year in December 2025, driven by strong demand for utility vehicles, industry body Society of Indian Automobile Manufacturers (SIAM) said on Tuesday.
Total passenger vehicle sales stood at 3,99,216 units in December, compared with 3,14,934 units in the same month last year, registering a growth of 26.8 per cent.
Two-wheeler dispatches to dealers also recorded a sharp increase, rising 39 per cent year-on-year to 15,41,036 units last month, as against 11,05,565 units in December 2024, according to a SIAM statement.
Sales of three-wheelers increased by 17 per cent to 61,924 units in December, compared with 52,733 units in the year-ago period.
SIAM said the automobile industry has entered the fourth quarter of FY2025-26 with strong momentum, following robust double-digit growth across all vehicle segments in the latter part of 2025. The sector anticipates steady growth in both wholesale and retail volumes throughout the quarter.
SIAM noted that the year-end sales push, a healthy pipeline of bookings, and the full transmission of interest rate cuts announced in 2025 on vehicle loans are likely to support demand. These factors are expected to drive continued growth into FY2025-26, backed by stable macroeconomic conditions and supportive policy reforms by the Government of India.
“While remaining watchful of geopolitical developments, the industry expects FY2025-26 to close on a positive growth trajectory, with policy-led tailwinds firmly in place, sustaining the robust performance witnessed in recent years,” the industry body said.